Impact of Inflationary Policies on Markets

The recent electoral outcome has sparked concerns regarding the potential for inflationary policies, particularly relating to Trump's proposed approach. Market reactions have indicated a focus on how the anticipated increase in tariffs and tax cuts could drive prices up while stimulating consumer spending. For instance, retail credits that rely on imports from countries like China are expected to suffer, as evidenced by a significant drop in unsecured notes of certain retailers. This dual approach of stimulating growth while managing inflation presents a complex scenario for interest rates and bond markets, with many analysts predicting continued turmoil in the latter.